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5.03.2012

Unicorn Killer slays Ben Bernanke

Ira Einhorn was the predecessor to today's Occupiers: a dirty hippie with rage issues.
Like the Occupiers, he was celebrated by the elitist establishment, and given a fellowship to Harvard's Kennedy School of Government. In 1977, he beat his girlfriend to death and stuffed her body in a trunk he kept in his closet for a year and a half before the neighbors started noticing more than usual hippie stench. Einhorn had given himself the hippie name "Unicorn" after the translation of his German last name: "one horn," and since has been known as the "Unicorn killer."

Well, old Ira's still rotting in prison, but his namesake, hedge fund manager David Einhorn, has just gone on a rampage that would make Ira proud. David Einhorn beat the central planning brains out of Ben Bernanke, and stuffed him in the Weimar trunk he rode in on.

My point is that you can have too much of a good thing and overdoses are destructive. Chairman Bernanke is presently force-feeding us what seems like the 36th Jelly Donut of easy money and wondering why it isn't giving us energy or making us feel better. Instead of a robust recovery, the economy continues to be sluggish.
Last year, when asked why his measures weren't working, he suggested it was "bad luck."

Click on over and read the whole thing. I can't possibly do it justice here. He uses the Simpsons family to illustrate how individuals rationally respond to insane monetary policy quite differently than the ignorant macroeconomic Ph.D. central planners expect.

I've often commented on how central planners, macro-economists, and liberals (but I repeat myself) fail to understand the incentive effect. The world would be a lot better off if Ben Bernanke took a remedial Micro-economics 101 course.